New Podcast with Evan Bleker

Hi All,

Just threw down another episode of The Intelligent Investing Podcast this week. You can listen to the episode, here. I sat down with Evan Bleker, who is a professional investor. Evan has built his track record by buying high quality net net stocks. When not researching stocks, he focuses his time on helping small investors learn the strategy so they can earn great returns.

Evan manages two investing websites: Net Net Hunter and Broken Leg Investing.

Evan discussed Warren Buffett’s net net investing practice during his partnership. Further resources available here:

You can follow Evan’s portfolio performance here:

You can sign up for his free newsletter on the Net Net Hunter home page.

How to Choose the Perfect Post-Retirement Job

Guest Post by Sharon Wagner

Many seniors jump back into the work world at some point during retirement. This is a great way to earn some extra income and fill your days doing something you enjoy or pursuing a new interest. Whether you’re looking for tech-oriented work or hoping to start a business, there are plenty of flexible options out there that won’t interfere with your retirement plans. Here are some ways to find the perfect job for your senior years.

 

Put Your Skills to Use

One way to find a great post-retirement job is to use the skills you developed in your previous line of work. Consider becoming a consultant, tutor, coach, or course instructor to share the knowledge you accumulated over your life. A job in the insurance industry is a great way to use your expertise in communication, negotiation, teamwork, and problem-solving. The insurance industry tends to be a good fit for seniors, because it requires very little formal education or specific work experience. To find out more about this industry, take some time to research insurance companies that you may be able to work for, like Lincoln Heritage. You can use sites like Indeed to learn about different companies and read reviews from people who work there. This can help you decide if this kind of employment would suit you.

 If you do end up working in sales, or any other position that requires you to stay in touch with clients, a good smartphone is essential. A reliable phone will keep you connected to your team and help you stay on top of your professional schedule. If your cell phone could use an upgrade, look for new phone models from your service provider to find something that fits your smartphone preferences and budget. You may be able to get a good deal on your purchase if you swap your old model for a new one.

 

Pursue Your Interests

 Retirement is the perfect time to find work that you love, so think about how you can turn your interests into a job. If you love animals, consider working as a pet sitter, assistant trainer, or kennel attendant. If you’re a people person, you might enjoy a job as a career counselor, PR practitioner, or sports writer. Seniors who enjoy fixing things can find work in home maintenance and home repairs. The possibilities are endless!

 

Try Seasonal Gigs

 Businesses are always looking for seasonal employees. Retail stores hire more staff to keep up with the holiday rush—according to Forbes, seasonal workers are in high demand in recent years! All winter, ski resorts need people to fill roles in administration, retail, marketing, and first aid. In the summer months, state fairs, pools, and amusement parks need workers. If you enjoy nature, consider working as a camp counselor, park ranger, or campground host. You can even find temporary work at your local farmer’s market and festivals!

 

Start Your Own Business

 If you have a great service idea or a wonderful product to sell, consider starting your own business. Home-based businesses are an excellent option for seniors who are limited by mobility or just want a little more control over their working life. Sixty and Me recommends that seniors start a business to find a sense of purpose in retirement. A business will give you something to nurture and grow and can be a great outlet for feelings of restlessness. If you’re looking for business ideas, consider becoming a freelancer, selling products online, or offering services to locals in your city.

 You may also be able to use your assets as the basis of your business. For example, you can use your car to drive people around or deliver things like packages, groceries, and restaurant food. If you own a home with a lot of extra space, you could rent out your spare rooms to vacation-goers. You can even make money using your backyard, renting it out to beekeepers or using it to grow vegetables to sell at your local farmer’s market.

 

Going back to work can make your senior years more enjoyable. There are endless possibilities for work in retirement, so don’t settle for something you find dull or stressful. This is your chance to find a job that you really love!

Gan Plc

Gan Plc

This week on the Intelligent Investing Podcast, I sat down with Jeremy Raper. One of companies we discussed Gan Plc.

Summary

Gan is a small cap and listed on the AIM junior exchange, so caveat emptor. The company is a provider of B2B software for internet gambling providers. Historically, all revenues came from Europe but the new major client now is FanDuel sports betting in the US and so they are plugged in to the structural multi-year growth runway in US legalized sports betting.

Revenues

The company gets royalty fees based on users and engagement thus as ARPDAU grows, margins should scale, like a SaaS business. Revenues are expected to double this year and there’s no reason why the company won't keep growing aggressively as sports betting growth continues.

Valuation

Today, Mr. Market offers Gan for <4x FY20E revs and EBITDA positive (maybe <15x EV/EBITDA) for a business growing triple digits. This is obviously highly unusual. The reason the business is cheap is because its not on a major exchange. However, this will change from next year with their NASDAQ listing.

Management

Dermot Smurfit's family owns ~30% of the company and is highly aligned. Not too long ago he explored putting the company up for sale but scrapped the plans. Clearly he thinks he can get more keeping it public and listing it on NASDAQ.

Conclusion

This is an atypical opportunity and highly interesting given the valuation/setup. You can listen to the full Intelligent Investing Podcast episode, here.

AerCap Holdings NV

AerCap Holdings NV (AER)

This week on the Intelligent Investing Podcast, I sat down with Jeremy Raper. One of companies we discussed was his largest holding, AerCap (AER).

Essentially, the company is run by a brilliant CEO who continues to buy back the stock below book value while the airplane fleet is understated on the books. Jeremy believes the company will eventually be sold at a premium.

You can listen to the full The Intelligent Investing Podcast episode, here.

The Process For Credit Based Equity Investing

The Process For Credit Based Equity Investing

This week on the Intelligent Investing Podcast, I sat down with Jeremy Raper. One of major themes we discussed was what Jeremy calls ‘Credit Based Equity Investing.’

Essentially, you’re buying thinking like a creditor yet buying equities. In this clip, Jeremy goes through his process of how he sources these ideas and what he looks for in an investment.

You can listen to the full The Intelligent Investing Podcast episode, here.

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Nio Makes A Good Short Candidate

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Nio (Short Idea)

This week on the Intelligent Investing Podcast, I sat down with Jeremy Raper. One of the stock ideas we discussed was shorting the company, Nio.

You can listen to the full The Intelligent Investing Podcast episode, here.

Jeremy believes that Nio is one of the most anomalous mispricings of a security he has ever seen in his career. Nio is a Chinese EV player that is likely structurally unprofitable and unable to scale, burning tons of cash. Furthermore, all the key executives have left, the company has taken on a ton of debt, and there’s no update on two emergency financing transactions.

Gone Dark

The company has essentially 'gone dark' (stopped reporting material information) - peculiarly a perk only available to Foreign Private Issuers (FPIs) despite being listed on the NYSE.

In any case, the company has likely run out of cash in the very near term, or will have to do an emergency financing transaction that wipes out the ADR equity.

Nio Bonds

The bonds trade at 30c on the dollar implying an EV for the whole company of <$500mm while the stock market cap ($2.3bn) implies an EV for the company >$4bn, or 9x that implied by the bonds.

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